Do I walk away? - Posted by Jane

Posted by Nate on March 22, 2001 at 20:23:29:

I think you are off here.

If the renter is so much a pain in the *** that they won’t allow anyone in the house, no way would I even consider letting them stay on as a tenant of mine.

The ownership idea sounds more interesting…if you can get this person to let you check their credit. That might be difficult considering they won’t even let you in the house. But I basically agree with the first response - offer low subject to an inspection, and then get the tenant outta there.

You could also make the offer subject to the property being delivered vacant. That would make the tenant the seller’s problem, not yours…

Good luck,

Do I walk away? - Posted by Jane

Posted by Jane on March 22, 2001 at 17:29:57:

I am looking at a property that is priced approx $25,000 under market, I plan on cleaning it up and renting it out. I called to schedule a visit to see the property and the listing agent told me that the renter in the house is being very uncooperative and to just make an offer subject to. From the outside it looks like it needs some cosmetic fix ups.
Is this better to walk away from, or just go with a low offer and see what happens? What does it take to get a tenant like that out of there? Am I looking at a lengthy escrow because nobody (pest control) will be able to get in?
Thank you all for advice.

Cash out the tenant - Posted by DanT

Posted by DanT on March 23, 2001 at 06:23:11:

I bought one under similar circumstances a few years ago. Landlord was not being paid rent and tenants were a couple of bullies. We negotiated a price, (really low of course) and then I went to the house and told the tenant that I was buying the house and that I would need to make repairs that couldn’t happen with him in it. So I offered him double his deposit back to move within 10 days. The deal was, “meet me here with the everything out at 5PM a week from Friday, don’t beat the place up but don’t worry about cleaning it up either”. He was thrilled. I met him their, walked through the house about 100MPH and handed him his money. Then changed the locks. I would have tripled, or maybe quadtrupled his deposit if it took that because I saved so much money on the property. DanT

Re: Do I walk away? - Posted by Dave Mckee

Posted by Dave Mckee on March 23, 2001 at 24:47:28:

You have a motivated seller here. Make an offer that covers the worst scenaro you see in this property, with closing AFTER the property is vacant. Let the seller hire a management service or attorney to evict the tenant.Make your offer contingent on your aproval of the preliminary title report and a T&D report. If it turns up too many repairs, you have a way out. Remember, buy it right or not at all.

Good luck!


Re: Do I walk away? - Posted by SueC

Posted by SueC on March 22, 2001 at 20:59:10:

Why is it priced so low? Is it the work it needs? Remember that you need grounds to evict the tenant, just their being uncooperative might be grounds, but you’d have to see the owner’s copy of the lease to determine whether you can evict. Ask the agent if you can review that before making an offer (can’t hurt, definitely take a look after making an offer).

It does sound interesting, don’t walk from this one, you might succeed with a lowball offer.

No! Don’t walk away… - Posted by BillW

Posted by BillW on March 22, 2001 at 17:53:51:

What you’re looking at here is a CLASSIC way that we , as investors, can make a LOT of money. Remember, we get paid, and paid well, to solve problems for other people. Do as the Realtor suggests and make a low offer, subject to inspection. If you can get inside, OK. If not, just put a clause in the offer/contract that says you will allow so much for damages and needed repairs. If the total exceeds this, than there will be an “adjustment” or “credit” to the buyer (you). Escrow need not be delayed, just have some of the proceeds held “in escrow” until the tenant is gone and an inspection is made. When this happens, go through the place with the seller and make a list.If your estimate covered the mess, release any excess money to the seller and your deal is complete. To get the tenant out, consult a good eviction lawyer and get the cost and time frame. Then adjust your offer price by an “appropriate” amount to allow for this. By taking this “problem” off the seller’s mind, you get paid really well. (Hey, you’re already looking at 25K, right?)

Re: No! Don’t walk away… - Posted by Martin

Posted by Martin on March 22, 2001 at 18:41:40:

I’m thinking I just read that you said you where going to fix the place up and rent it out, so my question is have you tried talking with the renter that is renting the house now and see if he/she would like to keep renting it out from you? Also what is the renters credit like? maybe the renter would consider buying the property from you after you close on it. I may be off here, but these are just some of the questions that come to my mind.

Good Luck!